The Tribunal allowed an application for issuance of a Recovery Certificate against a proprietorship firm and its guarantors for a loan default, granting reduced interest of 12% p.a. simple.
Allowed issuance of Recovery Certificate for Rs. 52,48,432/- plus interest at 12% p.a. simple from date of filing OA till realization.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU
Dated this 20th Day of August, 2026
Present: Sri. T. RAJESH Presiding Officer
OA.No.1358/2024
BETWEEN:
The Union Bank of India Branch at Kolar Town, Near Doomlight, Kolar Taluk, Kolar District. Represented by its Senior Manager, Mr. Johnson David.
…APPLICANT
AND:
And also at:
Shop at 2nd Cross, Azad nagar, Kolar Town, Kolar Taluk, Kolar District-563101.
And also at: Located at Municipal Sy No. 11, Konadenahalli Village, Vemgal Hobli, Kolar Taluk, Kolar District-563101.
...DEFENDANTS
Counsel on record/appeared for:
Applicant : Ravi Kumar N.G. Defendants : Exparte
FINAL ORDER
3 1358/2024
agreeing to service the loan account promptly and regularly, the defendants failed in complying the same, resulting in default in repayment and consequentially turning the loan accounts as NPA.
as against the defendants?
Both these issues are gone into and decided together.
4 1358/2024
unrebutted as defendants remained exparte. The evidence tendered by the applicant remains uncontroverted and undisputed. The evidences put forth by the applicant were found admissible and are sufficient to prove availment of credit facilities as stated in the OA, creation of Mortgage and Hypothecation as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendants and the claim of the amount due are also proved by the above documents. The claim of the applicant is well within the limitation.
i) The applicant is allowed to recovery an aggregate sum of Rs.
52,48,432/- (Rupees Fifty Two Lakh Forty Eight Thousand Four hundred
Thirty Two Only) with further interest @12.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants jointly, severally
and personally, after giving credit to all the amount recovered and
received during the pendency of the OA and allowed the same to be recovered by proceeding against schedule property. Schedule Properties to the OA be the schedule to the recovery certificate.
ii) If the sale proceeds are not found sufficient to cover the
amount due and payable to the applicant bank, the defendants Jointly, severally and personally and their assets are liable for the amounts due under the loan accounts.
iii) The applicant bank is allowed cost of the proceedings which
applicant to file cost memo within 7 days from the date of receipt of the order.
iv) The Recovery Certificate to be drawn in terms of this order and
transferred to Recovery for execution.
v) Interim application pending, if any, stands disposed of in terms
of this final order.
of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure)
Rules, 1993.
[Dictated to the Stenographer (DV), transcribed by her, corrected and signed and pronounced by me in the
Open Court, this the 20th Day of August, 2026].
Sd/- (T. RAJESH)
6 1358/2024
ANNEXURES
WITNESSES EXAMINED FOR THE APPLICANT BANK:
AW-1: Pralay Kanti Mondal, Manager of the applicant Bank
Exhibits on the part of the Applicant:
| Annexure | Date | List of Documents |
|---|---|---|
| For the Te | rm Loan limi | t of Rs. 15,00,000/- & Rs. 35,00,000/- |
| A1 | 03.01.2018 | Loan Application |
| A2 | 16.02.2018 | Sanction Letter |
| A3 | 16.02.2018 | Hypothecation Agreement of Goods and Debts executed by the defendant No.2 concerned to his Proprietorship firm the defendant No.1 for loan of Rs. 35,00,000/- |
| A4 | 16.02.2018 | Demand Promissory Note executed by the defendant No.2 concerned to his proprietorship firm the defendant No.1 for loan limit of Rs. 35,00,000/- |
| A5 | 15.02.2018 | Registered Simple Mortgage deed executed by the defendant No.2 for loan limit of Rs. 35,00,000/- in respect of the A Schedule property |
| A6 | 16.02.2018 | Letter of Guarantee executed by the defendant No.3 for loan amount of Rs. 35,00,000/- |
| A7 | 17.07.2019 | Letter Sanction |
| A8 | 13.12.2019 | Hypothecation Agreement of Goods and Debts executed by the defendant No.2 concerned to his Proprietorship firm the defendant No.1 for loan of Rs. 50,00,000/- |
| A9 | 13.12.2019 | Demand Promissory Note |
7 1358/2024
| A10 | 13.12.2019 | Letter of Continuity AD -09(M) executed by the defendant No.2 concerned to his Proprietorship firm the defendant No.1 for loan limit of Rs. 50,00,000/- |
|---|---|---|
| A11 | 13.12.2019 | Letter of Guarantee executed by the defendant No.3 for loan amount of Rs. 50,00,000/- |
| A12 | 15.09.2022 | Simple Debit Balance confirmation letter for the cash credit loan limit of Rs. 35,00,000/- |
| A13 | 29.11.2022 | Simple Debit Balance confirmation letter for the cash credit loan limit of Rs. 35,00,000/- |
| A14 | 14.03.2024 | Statement of accounts for the Cash Credit loan of Rs. 35,00,000/- for period from 31.05.2022 to 14.03.2024 with certificate |
Witness Examined for the Defendants: -Nil - List of Documents Exhibited for the Defendants: -Nil –
-Nil -
Sd/- (T. RAJESH)
PRESIDING OFFICER
2 issues framed by the court
Whether the applicant had succeeded in proving the OA claim as against the defendants?
What order are to be passed in the present OA?
3 provisions across 2 enactments
The Union Bank of India Branch at Kolar Town
M/s Fine Bakery
Mr. Shaik Irfan Pasha
Mr. Shaik Pasha
Smt. Muheera Taj
T. RAJESH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
